The average cost of property management depends on where you are and how your property management company approaches fees. Fees for property management are percentage-based or flat fee-based. At Residential Equity, we charge a flat fee. The advantage of hiring a property management company that uses a flat fee is you know what the management fee is going to be monthly. The percentage model will fluctuate, and you won’t always know what you’re paying. There’s no difference in how the property is managed when you’re considering different fee structures. It’s the same service.
Property Management Blog
Knowing how to screen a tenant is a critical part of managing a rental property, and we have been successful with placing good tenants in the properties we manage. We start with a written set criteria which is noted on all our listings and on our website. So, when someone finds our listings through one of the sites we advertise on, it will usually state what the requirements are to be approved for a property.
Rental RequirementsOur tenant screening requirements are very standard. We look for income to be at least three times the rent and verifiable. So, if the applicant is working under the table or not reporting income or mom and dad give them $1,500 in cash every month, that’s not going to count. It needs to be verifiable. If it’s court ordered child support, we need to see documentation. The entire household together needs to meet the income requirement. So, if there are two adults applying, the combined income needs to be at least three times the rent. We also look at credit. Everyone’s credit is different, so it’s hard to determine what the score should be. Scores are set depending on the open lines of credit that the applicants have. Generally we look for a credit report that reflects an overall positive score of 80% of total credit. Keep in mind, however, that someone with otherwise good credit might have a medical bills, causing their score to plummet. So, we don’t go by the scores too much. Instead, we look at the full report.
Rental History and Background CheckWe do ask that the credit is in good standing and we also look at two years of rental history or home ownership. There’s a lot of tricks to the trade as far as conducting checks and tenant verification. You need to make sure the tenant is telling you true statements. There are lots of things we do to check, and that knowledge comes with experience. If you’re in property management long enough, you’re accustomed to verifying information and checking every box. We have good luck with screening and our eviction rate is next to none.
Multiple ApplicantsMany times, we have several people interested in the same property. To make it fair, we use a first come basis. Whoever applies first and is qualified will get the property. We require all adult tenants to fill out an application, so the application isn’t complete until everyone who will be living in the unit applies. That’s when we begin screening, and the first completed application file gets the property if the tenants are qualified.
These are the best ways to manage your tenant screening process. If you have any questions, please contact us at Residential Equity Management. We’d love to tell you more about property management in Folsom, Sacramento or the surrounding area.
Determining What’s an Emergency
Advice for Landlords: Keep Your Property Habitable
Condition and Cleanliness
Changing the Locks
Create Curb Appeal
Tips for Renting a House: Seasons
One of the first questions landlords and investors ask when they contact us is: how much can I rent my house for? People want to make sure they are covering their expenses and earning a profitable rental income. However, you always need to remember that it’s the market setting your rental price, not your expenses. Today, we are talking about how to price a rental property and what to consider when you’re attaching a value to that investment.
How to Determine Rental Value: Managing ExpectationsSometimes, in determining how much to rent a property for, the landlord will come to us with an accounting of the mortgage payment, taxes, and insurance, hoping to earn at least that much in rent every month. They’ll even include the HOA dues, which are often not a tenant’s responsibility. It’s important to understand that you cannot price your rental according to your own expenses without doing your homework. Your price will depend on comparable properties in the area. Instead of your expenses, you need to consider your square footage, location, and property condition.
How Much Should You Rent Your House For? Our FormulaIn Sacramento, there are different neighborhoods, so prices fluctuate. We have a lot of track homes as well as other single family homes in older neighborhoods. When you have a property in a newer development, they are easy to price because they are the same age and close to the same layout. These properties may vary in square footage, but they are still easier to price. We use a tool in our software, where we have a rent match comparison. It allows us to put in the bedroom and bath square footage and add amenities for a particular property. When that property comes up for rent, we refer to our software to see what’s happening within that zip code. We’ll also go to Zillow and Rentometer and the other online resources. If we are comparing our listing to a property within a mile, we know we can price it within $100 or so.
This is how we effectively price rental properties in the Sacramento area. If you have any questions about this or anything pertaining to property management in Folsom, Sacramento or the surrounding areas, please don’t hesitate to contact us at Residential Equity Management.
BY JANELLE NORD
Convincing a tenant to allow you to arrange the cleaning of carpets after they vacate can be beneficial to both the client and manager. This will help determine or discover if there is carpet damage (mainly pet) beyond normal wear & tear as the carpet technician can fully inspect the premises without having a bias opinion to the person writing the check. If you have a regular carpet cleaning company, you are most likely receiving services at a discounted rate. The tenant will be pleased to follow your lead knowing they too will reap the benefit. This is also a great opportunity to have the carpets inspected if you have any suspicions.
There is a great tool out there that detects the main ingredient in urine, salt. !!! The tool is a hand held wand with a probe at the end that resembles a large needle. The probe is punctured into the carpet & pad in suspected areas of the room such as corners. The needle is small in width & leaves no damage to the floor or carpets. Anytime I suspect urine, even if the tenant uses another carpet cleaner, I request the probing. It works & will save you the hassle of explaining yourself to the client if you or the new tenant discover the damage after the security deposit has been returned.
BY JANELLE NORD
Maintaining the landscaping during the vacancy period is imperative. The immediate need when a unit comes vacant is to ensure the electricity is transferred. Without the electricity, the auto timer cannot function & can make it difficult for your handyman & vendors to make necessary repairs. Here in Sacramento, the weather can reach 100 degrees or more. Landscaping and lawns can burn within a one week period or potentially less. Relying on neighbors to water your property is not realistic and can become a potential liability if someone were to trip & fall on the premises. Communicating the need for curb appeal with your client is simple. After all, curb appeal is the first step in getting your vacancy filled as qualified renters typically judge a property from a simple drive by or available exterior pictures. If an auto sprinkler system is unavailable or a manual one exists, there are still options to ensure the landscaping or lawns are watered on a regular basis. For less than $100, an electronic watering system can be purchased. Electronic watering systems simply run by batteries & are attached to available hose bibs & hoses. The timer can be used by the tenant during their tenancy or can be stored at the property for future vacancies.
BY JANELLE NORD
The City of Folsom represents a truly unique & very diverse real estate market. The city offers a wide range of community characteristics bundled into one local market: from the historical district in Old Town Folsom and the surrounding charm of the vintage neighborhoods, to the very newest and most luxurious homes in the neighboring foothill communities. Folsom's individual communities maintain a distinct sense of character and appearance with an overall sense of community togetherness in the city itself. There is an abundance of local activities, vibrant business community and atmosphere of balanced growth, to being one of the strongest educational perspectives within the state. Management of real estate in the Folsom area requires knowledge of the bountiful options offered in each development.
The manager must match the appropriate needs and desires of the prospective tenant or investor with the specifics of a particular community. Currently, single family rental homes range in price from $1,195 up to $,2800 per month, depending on location, amenities & square footage. For many years to come, the City of Folsom's real estate market will continue to thrive & provide various real estate investment & rental opportunities. If you find yourself either needing to rent your home in Folsom or if you are interested in renting a home, please give me a call at (916) 458-5244 or visit our website atwww.ResidentialEquityMGMT.com to inquire about our current listings.
Property Management in Folsom